{"id":40324,"date":"2020-04-03T18:03:45","date_gmt":"2020-04-03T16:03:45","guid":{"rendered":"https:\/\/zuniclaw.com\/covid-19-and-economic-measures-the-government-to-provide-respirators-for-the-economy\/"},"modified":"2025-10-20T15:00:34","modified_gmt":"2025-10-20T13:00:34","slug":"covid-19-economic-measures","status":"publish","type":"post","link":"https:\/\/zuniclaw.com\/en\/covid-19-economic-measures\/","title":{"rendered":"COVID-19 and Economic Measures: the Government to Provide \u201cRespirators\u201d For the Economy"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"40324\" class=\"elementor elementor-40324 elementor-33396\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-272fed40 e-flex e-con-boxed e-con e-parent\" data-id=\"272fed40\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-705fc786 elementor-widget elementor-widget-text-editor\" data-id=\"705fc786\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>The gravity of the burden which the economy will have to face due to coronavirus is obvious, particularly when judging by the experience of other countries. The negative consequences of the pandemic will continue even after it is over, which inevitably leads to the need for state intervention on the economic front. The only and best way for the Serbian economic system to emerge from this struggle as a winner is for the state to take over some of the burden caused by the crisis and thus provide relief to the economy.<\/p><p>In that sense, the Serbian authorities took their task seriously: a little more than two weeks after the declaration of the state of emergency, the Government announced the adoption of a new legal framework aimed at reviving the unstable economy, preventing unemployment growth and preserving companies most affected by the <a href=\"https:\/\/zuniclaw.com\/en\/covid-19-serbia\/\">COVID-19 crisis<\/a>. The Government of the Republic of Serbia is expected to adopt a <strong>Regulation<\/strong> in the next 10 days, whose implementation is planned to start in May.<\/p><p>The very content of the Regulation consists of the Program of Economic Measures, valued at over \u20ac 5 billion, and comprises of four sets of measures. We will briefly go over each set in the following lines.<\/p><\/div><\/section><div class=\"av-special-heading av-3gt4gvf-855822f744d4b102535cb57d58276920 av-special-heading-h2 blockquote modern-quote modern-centered avia-builder-el-11 el_after_av_textblock el_before_av_textblock \"><h2 class=\"av-special-heading-tag\">First Set of Measures \u2013 Tax Policy<\/h2><\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>These measures are for the most part aimed at deferral of payment for the due tax liabilities.<\/p><\/div><\/section><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><ul><li><strong>Payment of payroll tax and social security contributions for the private sector is deferred<\/strong>, with the possibility of repayment in installments at a later date, with tax liabilities due in 2021. This measure is aimed to preserve the liquidity of business owners who pay up their employees\u2019 salaries, as well as self-employed entrepreneurs.<\/li><\/ul><ul><li><strong> Tax relief measures are also directed toward contributors of donations<\/strong> aimed at those institutions (medical, first and foremost) that are directly involved in the prevention and further spread of the virus \u2013 the donation contributors will be VAT exempt<\/li><li><strong> Payment of monthly advances on corporate income tax due in the second quarter is deferred<\/strong> \u2013 i.e., postponed from April to June. This is aimed to preserve the liquidity of all taxpayers, bearing in mind that this measure applies to all, regardless of their economic strength.<\/li><\/ul><p>\u00a0<\/p><\/div><\/section><div class=\"av-special-heading av-2tboxuz-7d71a064239c15921a2d732fdb9f47b7 av-special-heading-h2 blockquote modern-quote modern-centered avia-builder-el-14 el_after_av_textblock el_before_av_textblock \"><h2 class=\"av-special-heading-tag\">Second Set of Measures \u2013 Direct Aid to the Private Sector<\/h2><\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>These measures include direct payments to private sector entities, thus <a href=\"https:\/\/zuniclaw.com\/en\/employers-covid-19\/\">stimulating employers to maintain their existing headcount,<\/a> bearing in mind that the country will bear the cost of a portion of the payment of salaries (in the first case), i.e., compensation for salaries (in the second case).<\/p><\/div><\/section><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><ul><li>Lump-sum entrepreneurs, micro, small and medium-sized enterprises will receive direct <strong>financial aid in the amount of the minimum wage for the duration of the state of emergency<\/strong>.<\/li><\/ul><ul><li>Large private sector companies will receive <strong>subsidized financial aid in the amount of 50% net minimum wage<\/strong>, the number of which will be determined based on the number of employees retained by the employer, although there is currently no need for their work.<\/li><\/ul><h2>\u00a0<\/h2><h2>Third Set of Measures \u2013 Maintenance of Liquidity During and After the State of Emergency<\/h2><\/div><\/section><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>These measures are partly aimed at the future outlook \u2013 to mitigate the external impacts and consequences of the COVID-19 crisis on the economy in the Republic of Serbia. A current priority is to achieve stabilization, and it will certainly remain so for some time after the epidemic is over.<\/p><\/div><\/section><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><ul><li><strong> Program for granting loans<\/strong> and working capital for entrepreneurs, micro, macro, medium-sized enterprises, agricultural holdings, and registered cooperatives through the Development Fund of the Republic of Serbia.<\/li><\/ul><ul><li><strong> Guarantee schemes<\/strong> to support the liquidity of all the above-mentioned entities through commercial banks operating in the Republic of Serbia.<\/li><\/ul><\/div><\/section><div class=\"av-special-heading av-1xeuwyz-fa5a5bec01593eda60a393e48578330d av-special-heading-h2 blockquote modern-quote modern-centered avia-builder-el-21 el_after_av_textblock el_before_av_textblock \"><h2>\u00a0<\/h2><h2 class=\"av-special-heading-tag\">Fourth Set of Measures \u2013 Fiscal Stimulus for Citizens in the form of direct \u20ac100 aid.<\/h2><\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>Bearing in mind the <strong>primary goal<\/strong> <strong>behind the measures<\/strong> \u2013 to preserve employment for the duration of the state of emergency and to assist business entities whose commercial activity has been affected by the newly emerged conditions, the measures will not apply at everyone.<\/p><\/div><\/section><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p><strong>The following are exempted from the relief measures:<\/strong><\/p><ul><li><strong> Business entities that have reduced the number of employees by more than 10% during the state of emergency<\/strong> \u2013 not including employees whose fixed-term contracts expire during that period; and<\/li><\/ul><ul><li><strong> Business entities that temporarily ceased their business activities before the proclamation of the state of emergency<\/strong>, i.e., before March 15, 2020.<\/li><\/ul><\/div><\/section><div class=\"av-special-heading av-1t1qmff-d3275442c8a098828ee94ab73d0e935c av-special-heading-h2 blockquote modern-quote modern-centered avia-builder-el-24 el_after_av_textblock el_before_av_image \"><h2>\u00a0<\/h2><h2 class=\"av-special-heading-tag\">In Retrospect<\/h2><\/div><div class=\"avia-image-container av-276q3ga-859733631a74fd12d02b0b0a9f613ba4 av-styling- avia-align-center avia-builder-el-25 el_after_av_heading el_before_av_textblock \"><div class=\"avia-image-container-inner\"><div class=\"avia-image-overlay-wrap\">\u00a0<\/div><\/div><\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>As a recap, we remind you that the Serbian authorities have previously already taken certain measures at the economic front. Together with the newly announced measures of March 31, all-encompassing protection of the Serbian economic system from the global crisis is expected.<\/p><\/div><\/section><div class=\"av-special-heading av-14muj7v-964c7d41fe209d3599876acdf5d75f3d av-special-heading-h2 blockquote modern-quote avia-builder-el-27 el_after_av_textblock el_before_av_textblock \"><h2 class=\"av-special-heading-tag\">Government Measures:<\/h2><\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><ul><li>Price control has been imposed for essential foodstuffs, safety equipment, and protective disinfectants, while at the same time, a temporary export ban has been imposed on the export of basic products vital to citizens;<\/li><\/ul><ul><li>The Decision on the extension of validity for all identity documents that have expired or will expire during the state of emergency;<\/li><\/ul><ul><li>Employee protection measures during the state of emergency, adopted by the Decree on Organization of work of Employers during the State of Emergency, of which you can read further in <a href=\"https:\/\/zuniclaw.com\/en\/covid-19-employment-sebia\/\">COVID-19 and Employers: Didn\u2019t Like Work from Home? Better start\u2026;<\/a><\/li><\/ul><ul><li>Deferral from the application of the provisions of the Law on Taxes and Tax Administration relating to the annulment of an agreement authorizing a taxpayer to defer payment of tax liabilities \u2013 beginning with the installment due in March 2020;<\/li><\/ul><ul><li>Harmonization of deadlines in administrative procedures to prevent the breach of rights of parties and suspension of deadlines in court proceedings for the duration of the state of emergency.<\/li><\/ul><\/div><\/section><div class=\"av-special-heading av-rtjvpn-63affa2f737764cf9a7e8c35774863de av-special-heading-h2 blockquote modern-quote avia-builder-el-29 el_after_av_textblock el_before_av_textblock \"><h2>\u00a0<\/h2><h2 class=\"av-special-heading-tag\">Measures by the National Bank of Serbia:<\/h2><\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><ul><li>Moratorium \u2013 deferral in loan repayment for no less than 90 days \u2013 which we wrote extensively about in our blog <a href=\"https:\/\/zuniclaw.com\/en\/coronavirus-bank-loans\/\">COVID-19 and Loans: Take a Vacation from Loan Repayment<\/a>;<\/li><\/ul><ul><li>Restricting the rights of lessors in the form of imposing a ban on accrual of interest on outstanding claims and preventing the initiation of other legal actions towards the lessee;<\/li><\/ul><ul><li>Exemption from fees and other expenses for donations aimed at COVID-19 relief.<\/li><\/ul><\/div><\/section><div class=\"hr av-k8jxi4hf-80b5636ca5248abfbf17cbb8fe489546 hr-invisible avia-builder-el-31 el_after_av_textblock el_before_av_textblock \">\u00a0<\/div><section class=\"av_textblock_section av-jnfrqfkn-5e1f5f34e60d9386c2ecbc3ed5c04360\"><div class=\"avia_textblock linkz\"><p>In addition to all the measures presented, the competent authorities have left some leeway to adopt additional measures aimed at supporting the most vulnerable public sectors.<\/p><p>The announce measures for the economy that are expected in the next days should fully meet all the current needs of the Serbian economy and maintain it at a certain level during the state of emergency to allow its further development and progress once the COVID-19 epidemic passes.<\/p><\/div><\/section>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The gravity of the burden which the economy will have to face due to coronavirus is obvious, particularly when judging by the experience of other countries. The negative consequences of the pandemic will continue even after it is over, which inevitably leads to the need for state intervention on the economic front. The only and [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":69474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[112],"class_list":["post-40324","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-law-en"],"_links":{"self":[{"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/posts\/40324","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/comments?post=40324"}],"version-history":[{"count":3,"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/posts\/40324\/revisions"}],"predecessor-version":[{"id":59123,"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/posts\/40324\/revisions\/59123"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/media\/69474"}],"wp:attachment":[{"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/media?parent=40324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zuniclaw.com\/en\/wp-json\/wp\/v2\/categories?post=40324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}